Section 204.6

Subsection 204.6(1) - Tax payable

Administrative Policy

27 October 1994 Internal T.I. 9421586 - REGISTERED INVESTMENT AND STOCK INDEX FUTURES CONTRACT

no tax under s. 204.6 if qualify as an MFT/tax for quasi-MFT re futures contract based on transaction costs

Before going on to indicate that stock index futures were not prescribed investments for a registered investment, CRA stated:

[P]ursuant to subsection 204.4(7), where, at the end of any month an RI could qualify under both paragraphs 204.4(2)(c) and (d), it is deemed to have qualified under paragraph 204.4(2)(c), regardless of the fact that it was already accepted for registration under paragraph 204.4(2)(d). For such an RI there is no tax payable pursuant to section 204.6.

CRA went on to indicate that any such Part X.2 tax payable in respect of the acquisition of a stock index futures contract by a fund that was not an MFT and was a "quasi-mutual fund" under s. 204.4(2)(d) would be based on the brokerage fees and other costs incidental to the acquisition of the contract.